Stock Valutaion while ttransferring to Branches in different states

[ravi kiran]

Dear Sir

We seek your guidlines.

1) Head office in one state and branches in different states having different GST Numbers under the same PAN No.

2) Balance sheet is one only for Head office and its branches accross different states under same PAN No

3) Query: Stock transfers from Head office to branches to be valued at cost price or any profit to be added?

4) We are importing goods in head office and transferring to branches. We have landed cost available.

5) Do we need to transfer the goods to branches at cost price or do we need to add 10% of the landed cost?

Thanks & Regards

Ravi Kiran

AI Summary

Clarifying stock transfer valuation: Use open market value for GST purposes, not cost plus 10%, under CGST Rules. A query was raised regarding the valuation of stock transfers from a head office to branches in different states under the same PAN but with different GST numbers. The main concern was whether to value these transfers at cost price or add a profit margin. Responses highlighted that, as per CGST Rules, the value should be the open market value if the recipient is eligible for full input tax credit. If the open market value isn't available, alternatives include the value of like goods or a calculated cost plus 10%. Adding a 10% profit to the landed cost is unnecessary if the open market value is used.